With Joe Biden leading in the polls, many political analysts are predicting a blue wave this November that would put a Democrat in the White House, expand the Democratic majority in the House, and give the party control of the Senate.
If such a blue wave happens, the real estate industry could be hit by a tsunami of tax increases in 2021.
Biden has proposed a number of major tax increases that would, if enacted, have a seriously negative impact on real estate investors. Democratic members of Congress also have put forward a number of proposals specifically targeting the real estate industry. If the blue wave hits, it could sweep away like-kind exchanges, capital gains, carried interest, opportunity zones, expanded depreciation, and other tax incentives used by real estate investors.
A prospective Democratic government would be expected to move quickly in the first quarter of